In a partial relief to Wipro GE Healthcare, the Banglore Bench of Income Tax Appellate Tribunal (ITAT) restored the matter to AO with direction to refer to the Departmental valuation officer for determination of extent of property and consequent valuation.
The assessee, M/s. Wipro GE Healthcare Pvt. Ltd. had constructed a building on an area of 59,803.74 sq.ft. and the land appurtenant to the said building is 77,005.75 sq.ft., both aggregating to 1,36,809.50 sq.ft. Since this portion of land is used for business purposes, the assessee submitted that this portion of land aggregating to 1,36,809.50 sq.ft. is not accessible to wealth tax purposes. This claim has been accepted by the revenue.
The assessee determined the fair market value of 58,605.54 sq.ft of the above said land on the basis of a valuation report obtained from a registered valuer, who had valued the land at Rs.5,50,19,500/- as on 31.3.2011 relevant for AY 2011-12. Similarly, the value as at 31.3.2012 relevant to AY 2012-13 was determined by the registered valuer at Rs.5,50,19,500/-.
The A.O. accepted that the building and land appurtenant thereto is not assessable under Wealth tax Act. However, he took the view that the assessee should have valued the entire vacant land of 2,54,020.58 for wealth tax purposes, instead of valuing only 58,605.54 sq.ft, i.e., according to AO, the assessee should have valued the land having extent of 1,95,415.04 sq.ft also for wealth tax purposes.
The division bench of George George K. and B.R.Baskaran has held that since the matter has been restored to the file of the AO with the direction to refer the matter to the Departmental valuation officer by the coordinate benches in the earlier years, following the same, the tribunal restored the matter of determination of extent of property and consequent valuation therefore to the file of AO with similar directions in all the three years.
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